Ever since I moved back to the States from Europe several years ago, I've wondered why postpaid cell service is the norm in the U.S., as opposed to the prepaid model popular in Europe. If the competition of a free market should eventually deliver the best deal to the consumer, why are most Americans forced to sign lengthy service contracts and pay outrageous prices for air time they may not even use? Fortunately, the recent recession has sparked the growth of the prepaid market, giving pay-as-you-go subscribers like me more options.
By the way, since I switched to a prepaid plan, I now pay about $8 a month for cell service.
Smartphones come to prepaid wireless market | Signal Strength - CNET News
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